MBS UPDATE: Failed Attack On 4.0% Leading To Improved MBS

Volatility is certainly continuing and just because we're doing well now is no guarantee we will be in 30 seconds.  But as we suggested was possible, the fact that the 10 yr DID NOT break the 4.0% mark is being received positively by fixed income.  Both MBS and tsy's are now BETTER (just slightly) than pre-auction levels.  This puts the 5.0 at 99-20 and the 10 yr Tsy at 3.93.

Stay tuned and hopefull!